Time to strike in Brazilian property market as Real falls

News by Propertyshowrooms.com

With the value of the Brazilian real falling, now is the time for property investors to strike. The currency has weakened in recent times, particularly against the US dollar. It has also reached a four-year low against sterling and the euro. This means those looking for Brazilian property can pick up a bargain through the favourable exchange rate.

Samantha Gore, sales manager for uv10.com, said: “If they take the plunge right now, buyers from Europe and America have the chance to take advantage of these favourable exchange rates and make significant savings. Prices are in the region of ten per cent more affordable than they were this time four years ago, which is as good an incentive to buy as any.”

However, currency fluctuations mean the situation may not stay the same for long. On Monday (July 15th), the real changed little and opened at BRL2.2628 against the dollar. This was after an exciting trade on Friday of BRL2.2644. Nevertheless, economists and analysts have revised their forecasts down for Brazil’s growth this year, thanks to weak industrial performance.

Social unrest in the country has also contributed to the decline of the real. Leader Dilma Rousseff has proposed a national pact to calm complaints by improving public services, such as healthcare, education and transport. This is supported by 68 per cent of Brazilians. However, the finance minister has stressed that there will be between three and four per cent growth in 2013.

In what is another pleasing development for buyers, house prices are also on the slide.The Global Property Guide reported that in the first three months of the year Brazilian property values fell between five and seven per cent. Data from Empresa Brasileira de Estudos do Patrimonio, published in O Estado de S.Paulo, showed a 7.8 per cent drop in Sao Paulo in Q1. BuyAssociation has also recently acknowledged that since the onset of the financial crisis, Brazil has become the smart choice for investors. International Property and Real Estate News from Propertyshowrooms.com